SDX Energy posts decent rise in production for 2019

Middle East and North Africa-focussed oil and gas company SDX Energy updated the market on its operations and finances for 2019 on Wednesday, reporting full-year production of 4,020 barrels of oil equivalent per day (boepd) was 12% higher than 2018.

The AIM-traded firm said that by individual asset, production had either exceeded or was at the upper end of its 2019 guidance.

It gave 2020 production guidance of between 6,750 and 7,000 boepd, which would be between 68% and 74% higher than production in the year ended 31 December.

The board said that guidance included between 1,000 and 1,050 boepd for North West Gemsa, which the company could exit during the year if sufficient cost savings could be achieved by the operator.

SDX said its 2019 capital expenditure of around $40.7m was $4.5m higher than its guidance, primarily due to two extra wells being drilled in Morocco, with the campaign starting earlier in the fourth quarter and rig move times between wells being shorter than anticipated.

Its 2020 capital expenditure guidance was $25.5m, which primarily related to the completion of the Morocco 12-well drilling campaign, two exploration wells planned for South Disouq in Egypt, and up to three appraisal and development wells planned for the Meseda and Rabul fields in the West Gharb concession.

“2019 was a successful year for SDX, with all key metrics being ahead of expectations, success with the drill bit and our key South Disouq development project completing on time and on budget,” said chief executive officer Mark Reid.

“We have entered 2020 in a strong position with production at record levels, good monthly cash generation, a strong balance sheet and a busy work programme of drilling ahead of us, which is all fully funded.

“With eight wells planned for H1 2020, six of which are exploration/appraisal in nature, we are moving into a very exciting period of activity and I look forward to providing further updates in due course.”

At 1523 GMT, shares in SDX Energy were up 0.23% at 25.81p.